Corteva (CTVA) Has Risen 1% in Last One Year, Underperforms Market
If you are looking for the best ideas for your portfolio you may want to consider some of GDS Investments top stock picks. GDS Investments, an investment management firm, is bullish on Corteva Inc. (NYSE:CTVA) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Corteva Inc. (NYSE:CTVA) stock. Corteva Inc. (NYSE:CTVA) is a chemical company.
In July 2019, GDS Investments had released its Q2 2019 investor letter. Corteva Inc. (NYSE:CTVA) stock has posted a return of 0.2% in the trailing one year period, underperforming the S&P 500 Index which returned 10.9% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Corteva Inc. (NYSE:CTVA) stock has fallen by 1.9%.
Let’s take a look at comments made by GDS Investments about Corteva Inc. (NYSE:CTVA) stock in the Q2 2019 investor letter.
"When Corteva was spun off on June 1, 2019, DuPont shareholders received one share of Corteva for every three shares of DuPont which they owned.
Corteva, meanwhile, produces specialized agriculture chemicals which have FDA approval (similar to prescription drugs) and maintains a duopoly position in the domestic seed market (Bayer AG ADR (OTC: BAYRY) and Corteva control roughly 60% of the domestic market). The company begins its new life with $14.3B in global sales, $2.8B in EBITDA, and expected growth of 6%-10%. The mechanics of Corteva’s spin-off left the company with cash on the balance sheet which should exceed $2B by the end of 2019 and make the company attractive in an agricultural industry which has seen a lot of merger activity over the past several years. We see every reason to continue to hold Corteva and, if possible, take advantage of that activity in the future."
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In Q2 2020, the number of bullish hedge fund positions on Corteva Inc. (NYSE:CTVA) stock increased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Corteva's growth potential. Our calculations showed that Corteva Inc. (NYSE:CTVA) isn't ranked among the 30 most popular stocks among hedge funds.
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Disclosure: None. This article is originally published at Insider Monkey.
